Mizuho raises HCA Healthcare stock price target to $505 on strong outlook

Investing.com - Mizuho raised its price target on HCA Healthcare Inc (NYSE:HCA) to $505.00 from $475.00 on Monday, while maintaining an Outperform rating on the healthcare provider’s stock. The hospital operator, currently trading at $447.04 and commanding a market capitalization of $104.6 billion, has shown strong momentum, trading near its 52-week high with a P/E ratio of 17.31.

The investment firm increased its 2025-2027 adjusted EBITDA estimates by 3% for the hospital operator, despite factoring in a potential 5% headwind from the expiration of enhanced advanced premium tax credits (eAPTCs) scheduled for the end of 2025. According to InvestingPro data, HCA’s current EBITDA stands at $14.5 billion, with the company maintaining a "GREAT" financial health score of 3.24. InvestingPro subscribers have access to 12 additional key insights about HCA’s performance and prospects.

Mizuho noted there could be upside to its current estimates if these healthcare subsidies are extended beyond their current expiration date.

Additional upside potential exists if there are further Directed Payment Program (DPP) approvals in states including Florida, Georgia, and Virginia, according to the research note.

The price target adjustment represents a $30 increase from Mizuho’s previous valuation of HCA Healthcare shares.

In other recent news, HCA Healthcare reported strong financial results for the third quarter of 2025, surpassing analysts’ expectations. The company achieved a diluted earnings per share (EPS) of $6.96, significantly higher than the projected $5.72, resulting in a 21.68% surprise. Revenue for the quarter reached $19.16 billion, exceeding the anticipated $18.56 billion. This performance highlights continued strong demand and improved surgical growth, as noted by Leerink Partners. Additionally, Leerink Partners raised their price target for HCA Healthcare to $470, up from $465, while maintaining an Outperform rating. The research firm pointed to the company’s core performance and upside in the Directed Payment Programs (DPP) as key factors. These recent developments underscore HCA Healthcare’s robust financial health and market position.

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